GFG and Barrick Sign Strategic Earn-In to Accelerate Exploration at the Pen Gold Project Barrick to invest up to $17.68 million in exploration expenditures, make up to $1.2 million in cash payments and potentially advance the Pen Gold Project through feasibility
Media Release
TSX.V: GFG | OTCQB: GFGSF
GFG and Barrick Sign Strategic Earn-In to Accelerate Exploration at
the Pen Gold Project
Barrick to invest up to $17.68 million in exploration expenditures, make up to $1.2 million in
cash payments and potentially advance the Pen Gold Project through feasibility
August 25 , 2026 – Saskatoon, Saskatchewan, Canada – GFG Resources Inc. (TSXV: GFG | OTCQB: GFGSF)
(“GFG” or the “Company”) is pleased to announce that it has signed a definitive earn-in agreement (the “Agreement”)
with Barrick Gold Inc. (“Barrick”) for a strategic earn-in transaction on GFG’s 100%-owned Pen Gold Project (“Pen” or
the “Project”), located in the Timmins Gold District of Ontario (See Figure 1).
The transaction provides Barrick the opportunity to earn an initial 60% interest in Pen as the project operator by making
aggregate cash payments of $1.2 million to GFG, funding $17.68 million in exploration and project expenditures, and
delivering a National Instrument 43- 101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report
establishing a mineral resource of at least 1.5 million ounces of gold or gold equivalent within six years. Barrick may
increase its interest to 70% by solely funding a preliminary economic assessment (“PEA”) and to 80% by solely funding a
feasibility study.
Transaction Highlights:
• Significant partner -funded investment: Barrick may fund up to $17.68 million in exploration and project
expenditures to earn an initial 60% interest in Pen.
• Firm initial commitment: Barrick has committed to fund a minimum of $4.0 million in qualifying expenditures
within the first three years.
• Near-term drilling: The initial commitment includes at least 5,000 metres of diamond drilling before the third
anniversary of the Agreement.
• Non-dilutive cash to GFG: GFG will receive aggregate cash payments up to $1.2 million over the six-year earn-
in period, including $420,000 upon execution of the Agreement.
• Meaningful retained ownership: Upon completion of the initial earn- in, GFG will retain a 40% participating
interest in Pen.
• Potential advancement through feasibility: Barrick may increase its ownership to 70% by funding a PEA and to
80% by funding a feasibility study.
• Focused capital allocation: The transaction provides a pathway to aggressively advance Pen while allowing GFG
to direct its treasury toward its wholly owned Goldarm Property and broader discovery pipeline in the Timmins
Gold District.
Brian Skanderbeg, President and CEO of GFG, commented: “This proposed partnership represents a significant value -
creating opportunity for GFG shareholders and a strong endorsement of the scale and quality of the Pen Gold Project. The
transaction provides for substantial partner -funded exploration, meaningful n ear-term drilling and a pathway to advance
Pen through resource definition and potentially feasibility, while GFG retains significant exposure to future success.
“Pen is a large and highly prospective land package in the Timmins Gold District that requires the scale of investment
contemplated under this transaction to fully evaluate its potential. Importantly, this structure w ill allow us to accelerate
exploration at Pen without drawing on GFG’s treasury, while our team and capital remain focused on advancing Goldarm -
an emerging, underexplored gold corridor located within the well-established Timmins mining camp, where active programs
at Aljo, Montclerg and Nahanni are building a pipeline of high-priority targets and new discovery opportunities.”
Initial 60% Earn-In
Barrick may earn an initial 60% interest in Pen by making aggregate cash payments of $1.2 million to GFG, funding at least
$17.68 million in qualifying work expenditures over six years and delivering an NI 43- 101 technical report establishing
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mineral resources of at least 1.5 million ounces of gold or gold equivalent, all by the sixth anniversary of the effective date
of the Agreement.
The cash payments include $420,000 upon signing of the A greement, followed by annual payments of $130,000 for six
years. Barrick has made a firm commitment to fund at least $4.0 million in qualifying expenditures within the first three
years, including a minimum of 5,000 metres of drilling before the third anniversary of the A greement. Qualifying
expenditures may include drilling, exploration activities, technical studies, claim maintenance and project -specific
personnel costs.
If Barrick withdraws before satisfying the $4.0 million firm commitment, it must pay any shortfall directly to GFG in cash.
After satisfying the firm commitment, Barrick may discontinue the earn-in and would receive no interest in Pen.
Additional Earn-In Rights
Following completion of the initial 60% earn -in, the parties expect to form a joint venture with Barrick holding 60% and
GFG holding 40%.
Barrick may elect, within 60 days of forming the joint venture, to increase its ownership to 70% by solely funding and
delivering an NI 43- 101-compliant PEA within two years. Following delivery of the PEA, Barrick may elect, within 60
days, to increase its ownership to 80% by solely funding and delivering an NI 43-101 compliant feasibility study.
If Barrick does not exercise either additional funding option, future programs would be funded by the parties in proportion
to their respective ownership interests, subject to customary dilution provisions.
Operatorship and Exploration Programs
Barrick will act as operator during the initial earn-in period and will manage exploration programs at Pen. GFG will receive
quarterly reports on exploration activities, budgets, plans and results, and will retain customary site -access and technical-
review rights.
Following formation of the joint venture, the majority-interest holder will act as operator unless otherwise agreed.
Live Webinar
GFG will be hosting a live webinar to provide investors with an update on the Barrick partnership, its 2026 exploration
strategy and upcoming catalysts.
• Date: August 26, 2026
• Time: 12:00 PM Eastern Time
• Registration Link: CLICK HERE
About the Pen Gold Project
The Pen Gold Project is located approximately 50 kilometres southwest of Timmins, Ontario, within a well -established
mining corridor and strategically positioned between Discovery Mining Ltd.’s Borden Gold Mine and Pan American Silver
Corp.’s Timmins West Mine. Covering approximately 475 square kilometres, Pen benefits from excellent existing
infrastructure, with highway, rail and power corridors transecting the property and providing important logistical advantages
for exploration and future development.
The Project covers a substantial package of Archean greenstone and hosts the interpreted western extension of the
Porcupine-Destor structural corridor, a major regional structure associated with numerous world -class gold deposits
throughout the Timmins Gold Camp.
All amounts in this news release are expressed in Canadian dollars.
Notice to Reader: The mineralization hosted on adjacent or regional properties and historical showings described herein
is not necessarily indicative of the mineralization that may be identified on GFG’s subject property.
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Figure 1: GFG Gold Projects in the Timmins Gold District
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Anders Carlson,
P.Geo., Vice President, Exploration of GFG, a “qualified person” as defined under NI 43-101.
About GFG Resources Inc.
GFG is a North American precious metals exploration company focused on district scale gold projects in tier one mining
jurisdictions. The Company operates three gold projects, each hosting large and highly prospective gold properties within
the prolific gold district of Timmins, Ontario, Canada. The projects have similar geological settings that host most of the
gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold.
For further information, please contact:
Brian Skanderbeg, President & CEO
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: [email protected]
Website: www.gfgresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release contains certain statements that may be deemed “forward -looking information” within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to, statements regarding the proposed transaction; the timing and amount of cash payments and work expenditures;
the completion of drilling and other exploration programs; the establishment of a mineral resource containing at least 1.5 mi llion ounces of gold or gold equivalent;
Barrick earning a 60%, 70% or 80% interest in Pen; completion of a PEA or feasibility study; formation and operation of a joint venture; the advancement and exploration
potential of Pen; and GFG’s exploration plans and allocation of capital to its other projects.
Forward-looking information is based on management’s reasonable assumptions, estimates, expectations, analyses and opinions as of the date of this news release. Such
assumptions include, among other matters, that the proposed transaction will receive all required approvals; that exploration programs can be completed as planned; that
sufficient financing, personnel, equipment, permits and services will be available; that required permits and community and Indigenous agreements can be obtained or
maintained; and that exploration results will support continued advancement of the Project.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed
or implied. These risks include, but are not limited to, the risk that the proposed t ransaction may not receive required approvals or may not be completed; Barrick may
elect to withdraw from the earn-in after satisfying its firm commitment; expenditure, drilling, resource and technical-study milestones may not be achieved; exploration
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results may not support the establishment of mineral resources; mineralization may not be economically recoverable; and the g eneral risks associated with mineral
exploration, permitting, commodity prices, financial markets and Indigenous and community relations.
There is no certainty that the proposed transaction will be completed or that any forward-looking information will prove to be accurate. Readers should not place undue
reliance on forward-looking information. GFG undertakes no obligation to update forward-looking information except as required by applicable securities laws.